I echo much of what has been said so far and have read about this problem a few years back. The brewing industry in Germany is desperately trying to tap new markets.
The RHG is part of the problem but not so much in keeping brewers from making different beers but more in how it has shaped the German's perception what beer is. The vast majority of Germans, just like it was in the US, like balanced and mild beers that don't have weird (other call them interesting) flavors.
Even under the umbrella of the RHG a lot can be done to broaden the beer styles brewed in Germany. But the breweries who will do that will be small breweries. Like in the US, Germany needs to get a craft beer movement going that allows beer to be seen in a different light. Not only as a side dish for dinner but also as a drink that can be savored just like wine or cocktails.
The fading interest in beer among the German youth is one problem that might be difficult to overcome. Maybe once they age they'll regain interest in good beer just like many of us favored cheap beer/alcohol in college but now we have matured and appreciate better quality beer.
I doubt the German beer industry will die.